America's Cup legislation amended to let foreign tankers sail for Sunoco

November 08, 2011|By Andrew Maykuth, Inquirer Staff Writer
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  • such as this could work in the Phila. area for Sunoco under an amendment to legislation to allow foreign-flagged yachts in U.S. waters for the America's Cup races, far left. At top, the refinery at Marcus Hook, expected to be the site for the new Sunoco terminal.
  • such as this could work in the Phila. area for Sunoco under an amendment to legislation to allow foreign-flagged yachts in U.S. waters for the America's Cup races, far left. At top, the refinery at Marcus Hook, expected to be the site for the new Sunoco terminal. (Liquefied natural gas vessels )
  • LAURENT GILLIERON / Associated Press

Three huge 900-foot fuel tankers have little in common with the sleek yachts that compete in the America's Cup race. But two Pennsylvania federal lawmakers have found a way to lash the vessels together in one piece of legislation.

The U.S. Senate on Monday night was poised to approve the America's Cup Act of 2011, which would waive a law that requires certain vessels that sail in U.S. waters to be flagged in the United States.

At the behest of U.S. Sen. Pat Toomey and U.S. Rep. Pat Meehan, both Republicans, the America's Cup legislation was amended to allow three foreign-flagged tankers to work in the Philadelphia area for Sunoco Inc.

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The massive tankers are the linchpin of Sunoco's Mariner East project, which the Philadelphia refiner announced last year. The aim is to transport a liquid by-product of Marcellus Shale natural gas to industrial customers on the Gulf Coast.

Toomey and Meehan argue that the Sunoco project means jobs - 300 to 400 construction workers to build a terminal in Marcus Hook, and 25 full-time positions once the cargo begins to flow.

"It's kind of hard to argue why you should let a few sailing ships come in for a few weeks of racing and not put an industrial ship to work that will be there in place long after the race is done," said Meehan.

The lawmakers had been working to get legislation to allow Sunoco to reflag the liquefied natural gas vessels.

But then the legislators heard that California lawmakers were hastily preparing the America's Cup Act to allow 60 foreign-flagged vessels to participate in preliminary races scheduled to start Saturday in San Diego. They saw an opportunity to attach the Sunoco proposal to speed up their objective.

"This is, for me, for our region, an important economic opportunity," said Meehan.

The legislation waives the Jones Act, a 1920 law that requires that all goods transported by water between U.S. ports to be carried in ships that are owned, built and flagged in the United States and crewed by U.S. citizens or permanent residents. The law's aim is to protect the U.S. Merchant Marine.

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